Oil Drops To Lowest Since November As U.S. Inventories Swell

Oil prices slid to almost four-month lows on Wednesday, with Brent briefly falling below $50 a barrel, after data showed U.S. crude inventories rising faster than expected, piling pressure on OPEC to extend output cuts beyond June. The U.S. Energy Information Administration (EIA) said U.S. inventories climbed almost 5 million barrels to 533.1 million last week, far outpacing forecasts of 2.8 million. “A persistent increase in U.S. oil production, together with a rise in imports from Canada, contributed toward a large build in crude oil inventories,” said Abhishek Kumar, senior energy analyst at Interfax Energy in London. “The market remains nervous about rising U.S. production, which is also reducing the effectiveness of output cuts by the OPEC and some non-OPEC countries,” Kumar added.

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Source: Reuters

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